Constantia Flexibles, the world’s fourth largest flexible packaging group, is aiming to double its sales in India within the next five years following the completion of its takeover of Creative Polypack.
Last week, Constantia Flexibles completed its acquisition of Creative Polypack, a deal which elevated it to the position of the third largest flexible packaging company in India.
Constantia Flexibles is expecting to reach the €200 million sales mark (INR 1,600 crore/US$ 242.3 million) in 2022, through market growth and ongoing investments.
India has become the third largest economy in the world after the US and China, with high single-digit GDP growth, major infrastructure projects in roads and ports, a simplification of the tax system and rising private consumption, especially among the burgeoning middle-class. The flexible packaging market in India is expected to grow by more than 10 percent in the next five years, driven by the megatrend urbanization and the expansion of the retail sector.
Alexander Baumgartner, Constantia Flexibles CEO, said: ‘We are proud to be here in India today to announce our ambitious growth plans in the fastest growing flexible packaging market worldwide. Our production footprint allows us to cover the whole of the Indian subcontinent and bring the latest innovative and sustainable packaging solutions to our valued customers.’
Before the acquisition of Creative Polypack, Constantia Flexibles was already a leading supplier of film-based flexible packaging for the Indian market since acquiring Parikh Packaging in 2013, which is based in Ahmedabad, western India. Parikh Packaging is investing a double-digit million euro amount (INR 100 crore) in a new greenfield site in Ahmedabad, which will be home to a polyethylene blown film extruder, high-definition flexo printing press and laminators that will produce high barrier laminates that can be fully recycled. The extra capacity will come on stream in 2019.
Creative Polypack manufactures film-based flexible packaging for the food, and home and personal care (HPC) industries, as well as paper-based soap wrappers. The company serves domestic and international consumer goods companies in India. Creative Polypack intends to invest on average €6 million a year (INR 50 crore) in new production capacity, as well as other infrastructure, at its Kolkata, Baddi, Kanpur and Puducherry sites in the coming years. Above all, it plans to double its capacity at the newly-established Assam site.
Constantia Flexibles noted that major FMCGs are demanding the highest level of sustainability for their packaging material and the new investment will help them to comply with upcoming Indian Plastic Waste Management (PWM) regulations that promote only fully recyclable flexible packaging. The investment also fits in well with the Indian government’s campaign Swachh Bharat Abhiyan (SBA) to clean the nation.